Over 10 million households will get 300 units of free power every month under the Centre’s flagship rooftop solar scheme, Finance Minister Nirmala Sitharaman announced while presenting the interim budget on Thursday. She emphasized India’s strong intention to build a “net-zero” green economy by 2070.
The nationwide scheme will incentivize households to save up to Rs 15,000-18,000 per year from free solar power by selling excess rooftop solar panels to power distribution companies. The plan, first announced by Prime Minister Narendra Modi on January 22, is also expected to contribute to India’s ambitious goal of installing 500 gigawatts of non-fossil energy by 2030.
1 GW offshore wind feasibility gap funding
Sitharaman also announced viability gap funding to harness offshore wind potential, achieve an initial capacity of 1 GW, and build coal gasification and liquefaction capabilities.
Experts say support for 1 GW of offshore wind could also be a game-changer for the industry, given that India is expected to generate 130 GW of the 500 GW of non-fossil energy through wind power by 2030. However, more support is needed.
Shantanu Srivastava, principal analyst of sustainable finance and climate risk at the Institute for Energy Economics and Financial Analysis (IEEFA), said overall wind power expenditure currently stands at 9.3 billion rupees, down from the 1,214 billion rupees budgeted in the previous fiscal year. ).
“The government has released an auction plan to bid for 37 gigawatt equivalent of offshore wind projects over the next eight years (to 2029-30). This will require additional spending to achieve the target,” he said.
The expenditure on the green hydrogen mission was Rs 600 crore, an increase from the previous year.
electric car
Experts say the Budget’s push to strengthen the electric vehicle (EV) ecosystem and large-scale rollout of electric buses through payment security mechanisms will also help decarbonize the mobility sector and boost India as a potential manufacturing hub.
“The announcement of Rs 100-crore funding is an important step towards attracting private investment in innovation, research and development in the clean energy sector,” said Saurabh Kumar, India vice-president of the Global Energy Alliance for People and Planet (GEAPP).
“The emphasis on new rail corridors for energy, minerals and cement will also help reduce pollution by reducing reliance on trucks and expanding the electric mobility ecosystem,” said Aarti Khosla, director of climate trends, while It was emphasized that these measures will help reduce pollution. It also reduces India’s over-reliance on imported fossil fuels such as crude oil.
bioeconomy, coal gasification
The budget also highlights the bioeconomy, including a new biomanufacturing and biocasting scheme to support environmentally friendly options, which is expected to remove some bottlenecks, help the sector grow and decarbonise industry.
“Biogas can play a key role, but whether it is ethanol or excess feedstock from sugar cane or corn, a distinction needs to be made. Burning excess straw causes air pollution and requires more support from governments in terms of technology and finance.” IEEFA South Asia Director Vibhuti Garg said.
The Finance Minister also announced the phased compulsory blending of CNG, PNG and compressed biogas, as well as financial assistance for the procurement of biomass aggregation machinery. Experts further said that coal gasification, although controversial, can play an important role in India’s energy security as northern countries promote natural gas as a transitional fuel.
“India has vast reserves of coal which, if gasified, can produce a product almost equivalent to natural gas. Dhruba Purkayastha, director of the Indian Climate Policy Initiative, said there will be a phased mandate to mix compressed biogas with compressed natural gas for transport and Papua New Guinea. purpose, is a well-thought-out strategy for cleaning coal gasification gas.
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